Police question report of India code theft

IDG News Service - Police officials investigating the alleged theft of source code at Jolly Technologies' Mumbai development center are questioning aspects of the security incursion reported by the company (see story).
Jolly lacked a security policy at its Mumbai center, according to investigators examining the alleged theft of company code by a development center employee.
"We have done a preliminary inquiry and took the help of technical experts, but prima facie nothing during this inquiry indicated that the employee had transferred any file or document from her office computer to any other location," said Anami Roy, Mumbai's commissioner of police. Roy added that Sandeep Jolly, president of Jolly, refused to give police a formal complaint and didn't cooperate with the investigation.
"We got a letter from an employee of the company, but that was a sketchy kind of a report and cannot be treated as a complaint," Roy said.
Without a formal complaint from Sandeep Jolly or evidence of a theft, the Mumbai police can't proceed with an investigation. "Our own inquiry does not disclose the commission of a cognizable crime," Roy said.
The police aren't willing to register the case, according to Sandeep Jolly. "We have learned that the police will not file a FIR [first information report] until they are heavily bribed, as they know that there has been a huge loss to the company," Jolly said by e-mail.
Jolly Technologies is a division of San Carlos, Calif.-based Jolly Inc., which sells labeling and card software. It issued a statement earlier this month, reporting that an employee at its 3-month-old research and development center in Mumbai stole portions of source code and confidential design documents related to one of its key products.
On July 19, the employee in Mumbai uploaded and e-mailed files containing the source code and other confidential company data to her Yahoo e-mail account, according to Sandeep Jolly.
One hurdle to any investigation of the case is that Jolly Technologies' Mumbai facility fell short on security, according to investigators. "It does not have a security policy, it has no log of the computer and network activity at the center, and passwords are known to all and sundry," said Vijay Mukhi, a technical consultant to the Mumbai police on this investigation.
"We asked Jolly Technologies for the log, and they were unable to provide it to us," Mukhi added. "As the company has no log, I have no proof that there was a source code theft, and if so who did it."
However, Jolly Technologies does have the log,